Chart settings focusing on the RCI3 double-top and RCI3 double-bottom

RCIis an indicator that ranges between -100 and +100. When it reaches the overbought territory (for example +80 or higher) it may be interpreted as overbought, and when it reaches the oversold territory (for example -80 or lower) it may be interpreted as oversold.

On the other hand, RCI can cling to the overbought or oversold zone, and in that case it may be interpreted as a continuing strong uptrend (downtrend).

Additionally, it is common to combine three RCIs, using RCI9 for short-term, RCI26 for mid-term, and RCI52 for long-term. This trio is often referred to as the“Three-Line RCI”组合.

When the Three-Line RCI reaches the overbought zone simultaneously (for example +80 or higher) it may be called“Threefold RCI Top, and when it reaches the oversold zone simultaneously (for example -80 or lower) it may be called“Threefold RCI Bottom.

Because all three RCIs are aligned in the overbought (or oversold) zone, Threefold Top (Threefold Bottom) may be judged as being in an even more overbought (oversold) condition than when one or two RCIs are in the overbought (oversold) zone.

Conversely, in a Threefold Top (Threefold Bottom) the three RCIs may stick together in the overbought (oversold) zone, in which case a very strong uptrend (downtrend) may be continuing.

From the above, the Threefold Top (Threefold Bottom) RCI may be considered one of the important chart points.

Here, I would like to introduce one chart setting that might help in dealing with the Threefold Top (Threefold Bottom) RCI.

In the charts featured in this article, in addition to the indicator that displays the three-line RCI, two other indicators are used below.

(1)【RCIBT3】

MT4 indicator that notifies you when the three RCIs reach the top (or bottom)

(i.e. it notifies when the Threefold Top (Top and Bottom) is reached)

This indicator is

　　“RCI Threefold Top (Bottom), Twofold Top (Bottom), Top (Bottom) Alert MT4 Indicator【RCIBT】”

　　https://www.gogojungle.co.jp/tools/indicators/22204

included.

(2)【RBTRE3】

Arrow indicator that displays when the short-, mid-, and long-term RCIs reach the overbought (oversold) line and the short-term RCI reverses from outside to inside the overbought/oversold line

This indicator is

　　“Arrow Indicator for Reversal from RCI Trough/Peak【RCIRE・RBTRE】”

　　https://www.gogojungle.co.jp/tools/indicators/23237

included.

Top: Sign from RCIBT3, Sign from RBTRE3

Bottom: Three RCIs line (RCI9, RCI26, RCI52)

In this case, the price has smoothly turned downward (upward) from the Threefold Top (Threefold Bottom), andthe RBTRE3 signmay be effectively catching the price reversal downward (upward).

※【RCIBT】 and 【RCIRE・RBTRE】 do not include indicators that display the RCIs, so please note.

In the above diagram, RCIs are displayed for convenience of explanation, but in reality, even if RCIBT3 or RBTRE3 is installed, RCIs will not be displayed.

Chart Example-2

Top: Sign from RCIBT3, Sign from RBTRE3

Bottom: Three RCIs line (RCI9, RCI26, RCI52)

In this case as well,RBTRE3 signmay effectively catch the price reversal upward (downward).

Chart Example-3

Top: Sign from RCIBT3, Sign from RBTRE3

Bottom: Three RCIs line (RCI9, RCI26, RCI52)

In this case, a very strong uptrend is considered to be occurring; the first, second occurrences of the RBTRE3 sign do not lead to price declines, but after the third occurrence, the price begins to fall slightly.

Chart Example-4

Top: Sign from RCIBT3, Sign from RBTRE3

Bottom: Three RCIs line (RCI9, RCI26, RCI52)

In this case, a very strong downtrend is considered to be occurring, and the first to third occurrences of the RBTRE3 sign do not lead to price increases, but after the fourth occurrence the price rises significantly.

How to configure the chart

[1] First, installRCIBT3.

When the three-line RCI is not in the overbought zone, the next candle lights a red star when the three-line RCI reaches the overbought zone.

[2]RCIBT3Change to display only the star without the arrows

By setting the color of the portion corresponding to the arrows to “None,” arrows are not displayed and only stars are shown.

[3]RCIBT3Change the star symbol to the number ③ representing threefold top

Change Arrowtype1 and Arrowtype3 to “142” to change the star to the number ③ representing threefold top.

For reference, explanations of what symbols can be used instead of stars or arrows can be found at the following sites.

　　https://www.mql5.com/ja/docs/constants/objectconstants/wingdings

[4]RCIBT3Change the size of the number ③

For example, setting the width of the star to “3.” changes the size of the number ③ in RCIBT3.

[5]RCIBT3Adjust the display position of the number ③ as needed

If necessary, modify the values of SkyBlueStar and RedStar to adjust the display position of the number ③ in RCIBT3.

[6] Next,RBTRE3Install

When the three RCIs reach the oversold line and the short-term RCI returns from outside to inside the oversold line, a light-blue star lights up.

Then, when the closing price confirms the light-blue star, a light-blue upward arrow lights up at the open of the next candle.

[7]Adjust the display positions of the stars and arrows for RBTRE3

If necessary, modify the values of SkyBlueStar, SkyBlueArrow, RedStar, and RedArrow to adjust the display positions of the stars and arrows for RBTRE3.

That concludes the chart configuration method.

Finally...

　　RCI Threefold Top (Bottom), Twofold Top (Bottom), Top (Bottom) Alert MT4 Indicator【RCIBT】

　　https://www.gogojungle.co.jp/tools/indicators/22204

The above product includes indicators that notify not only RCIBT3 but also twofold Top (Bottom) and Top (Bottom).

Also,

　　Arrow Indicator for Reversal from RCI Trough/Peak【RCIRE・RBTRE】

　　https://www.gogojungle.co.jp/tools/indicators/23237

The above product includes three indicators in addition to the RBTRE3 introduced in this article.

From the combinations of indicators included in【RCIBT】 and【RCIRE・RBTRE】, you may find chart settings that are useful beyond the “RCIBT3 and RBTRE3 combination” introduced in this article.